KwaZulu-Natal’s Dube TradePort would contribute R5.6-billion to South Africa’s gross domestic product and create about 150 225 jobs by 2060, President Jacob Zuma told a gathering of public and private sector stakeholders and investors at the formal opening of the industrial development zone (IDZ) last week.

IDZ benefits, which include both fiscal and customs incentives, now apply to agro-processing and manufacturing enterprises located within Dube TradeZone and Dube AgriZone. This represents the first phase of Dube TradePort Corporation’s roll-out and will cover 300 ha of agroprocessing and industrial activities, growing to more than 700 ha into the future.

Trade and Industry Minister Dr Rob Davies said that, although legislation that would broaden the scope of IDZs and transform them into special economic zones (SEZs) had been signed into law at the beginning of the year, government was still in the process of setting up the necessary institutional mechanisms.

Activity

He said that, because a great deal of activity already under way at the Dube TradePort was covered by the old legislative framework, it had been decided to declare it an IDZ in July this year on the understanding that, as the new legislation was put in place, the terms of the permit would be amended.

Zuma indicated that all IDZs would auto-matically receive SEZ status when the new legislation came into effect. Support measures would include exemption from value-added tax and customs duties, a section 12i tax allowance, a 15% corporate tax rate, a building allowance and an employment tax incentive.

He said the main sectors that would benefit from the Dube TradePort IDZ would be aero-space and aviation-linked manufacturing and related services, agriculture and agro- processing (including horticulture, aquacul- ture and floriculture), electronics manufac-turing and assembly, medical and pharma-ceuticals production and distribution and clothing and textiles.

“This IDZ can only succeed given its strategic location. It is within a strong economic region and logistics hub and is in close proximity to vital road, air, rail and ports linkages. This IDZ is also backed by the [province’s] 60-year master plan and a focused development strategy to turn it into a premier world-class investment and industrial hub,” he commented.

Zuma said government was determined to create an environment that was investor friendly and would continue to improve support measures both through the SEZs and through other developmental tools.

He said that, since the announcement of the new support package for IDZs, there had been growing interest from both foreign and domestic investors. This year, the Coega IDZ in Port Elizabeth attracted over R1.8-billion in investment, while the East London IDZ attracted over R500-million in investment. Nineteen potential investors had also expressed an interest in the new Saldanha Bay IDZ, despite the fact that this was only in the early stages of development.

He added that the Dube TradePort IDZ has already attracted over R900-million in private sector investment.

Considerable Growth

He said that this was expected to grow considerably and, by 2060, additional developmental growth around the Dube TradePort precinct including upgraded roads, the extension of the cargo terminal, an increase in passenger volumes and the development of small and medium businesses around the region would be evident.

KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs Michael Mabuyakhulu noted that government’s backing and the province’s 60-year master plan for the Dube TradePort provided investors with the security of sustained growth and development.

He noted that, over the past five years, Dube TradePort had grown to 2 840 ha and created about 6 527 new jobs.

“Dube TradePort is Africa’s first purpose-built aerotropolis. “This freight-orientated aerotropolis coupled with IDZ designation will certainly quicken the pace of development at Dube TradePort and, I will confidently add, increased demand for greater levels of airlift out of Durban to domestic, regional and international markets.

“This would, in turn, augment efforts to grow our strategically influential location – together with two of Africa’s major seaports – to become a truly viable and sustainable alternative gateway to South Africa, Africa and the world,” added Dube TradePort Corporation chairperson Zanele Bridgette Gasa.